Premier, Inc. Divesting Non-Healthcare GPO Assets to Omnia Partners

Premier, Inc., a leading healthcare improvement company, uniting an alliance of more than 4,400 U.S. hospitals and health systems and approximately 250,000 other providers and organizations to transform healthcare, recently announced that its Board of Directors is evaluating potential strategic alternatives to enhance value for stockholders.

The Board has established an Independent Special Committee composed of independent directors to evaluate any alternatives that may involve actual or potential conflicts of interest.

Working with financial and legal advisors, the Board and the Independent Special Committee are considering a broad range of potential options, including a sale of part or all of the company, recapitalization or other partnership opportunities, among other potential alternatives.

As part of its ongoing review of strategic alternatives, Premier announced that it has entered into a definitive agreement with OMNIA Partners (OMNIA), a leading non-healthcare group purchasing organization (GPO), under which Premier will divest its non-healthcare GPO operations for approximately $800 million in cash, subject to certain purchase price adjustments.

Following the close of the transaction, OMNIA will become the primary GPO for Premier’s non-healthcare members, which include educational, hospitality and recreation organizations, and will provide support to the channel partners that service non-healthcare GPO members. These members will continue to have access to the Premier GPO portfolio.

The transaction will have no impact on Premier’s healthcare businesses, and the company will maintain all existing healthcare contracts, services, solutions and programs.

Following the transaction, Premier and OMNIA have aligned growth incentives and will economically benefit from non-healthcare GPO members’ continued purchasing through Premier’s supplier contracts.

The transaction, which was unanimously approved by Premier’s Board of Directors, is expected to close by early August 2023, subject to regulatory approval and customary closing conditions. As such, the transaction is not expected to have an impact on Premier’s full-year fiscal 2023 financial results.

OMNIA Partners is the largest and most experienced organization in procurement and supply chain management. Covering private sector, public sector, nonprofit and multifamily housing, OMNIA Partners unites industry-leading buying power and world-class suppliers to offer an extensive portfolio of sourcing solutions and partnerships.

Takeaway: Premier is working to enhance its focus on member services and core healthcare businesses as the organization continues executing its strategies to drive sustainable, long-term growth